Overview of the Liquidation Event
According to on-chain analyst Yu Jin, a market rebound of about 4% at 3 a.m. led to the liquidation of a trader's $332 million short position. The trader, associated with address 0xD83...Fd7, had one-third of their position wiped out during the event.
Significant Unrealized Profit Loss
The liquidation caused the trader's unrealized profit to drop from $24 million to just $4 million, representing a $20 million loss in potential gains. This highlights the high volatility and risks inherent in leveraged trading.
Rapid Strategic Adjustment
Despite the setback, the trader quickly adjusted their strategy, reestablishing part of their short position. They now hold approximately $266 million in short exposure, indicating continued bearish sentiment toward the market.